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Fingen's 11-year, $1,000 par value bonds pay 12 percent annually. The market price of the bonds is $1,110 and the market's required yield to maturity
Fingen's 11-year, $1,000 par value bonds pay 12 percent annually. The market price of the bonds is $1,110 and the market's required yield to maturity on a comparable-risk bond is 9 percent. a) Compute the bond's yield to maturity. b) Determine the value of the bond to you, given your required rate of return. c )Should you purchase the bond?
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